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Components | March 21, 2012

Semtech completes Gennum acquisition

Semtech Corporation has completed the acquisition of Gennum Corporation. Semtech's agreement to acquire Gennum was announced previously on January 23, 2012.
"Combining Gennum's 1 Gbps to 25 Gbps signal integrity solutions with Semtech's 40 Gbps to 100 Gbps SerDes solutions creates one of the industry's most complete and robust analog and mixed signal portfolios targeted at the communications and enterprise computing segments," said Mohan Maheswaran, President and Chief Executive Officer of Semtech Corporation. "This will enable us to help customers reduce bottlenecks in the access, metro and core networks, as demand for bandwidth continues to escalate. Moreover, Gennum's strong position in video broadcast and the emerging HD video surveillance market further diversifies Semtech's portfolio of high-performance analog semiconductors."

Through its indirect wholly-owned subsidiary Semtech Canada Inc., Semtech Corporation acquired 100% of the outstanding shares of Gennum Corporation for CDN$13.55 per share for a total purchase price of approximately CDN$500 million.

The acquisition was completed by way of a plan of arrangement under the Business Corporations Act (Ontario) and was financed with a combination of cash from Semtech's international cash reserves and $350 million of five-year secured term loans with a combined floating interest rate of approximately 4%.

Following the completion of the acquisition, Gennum Corporation has become Semtech Canada Inc. The shares of Gennum are expected to be delisted from the Toronto Stock Exchange by March 26, 2012, and Gennum will cease to be a reporting issuer under applicable Canadian securities laws as soon as practicable. To receive the cash consideration for shares of Gennum, registered shareholders must follow the instructions detailed in Gennum's information circular dated February 13, 2012.

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